The U.S. Department of Labor has announced that LinkedIn Corp. has agreed to pay $3.3 million in overtime back wages and $2.5 million in liquidated damages to 359 workers in California, Illinois, Nebraska and New York. All over the country, employers are working “off the clock,” without pay or overtime. This practice harms workers, denies them the wages they have rightfully earned and takes away time with families. The Department of Labor is suggesting that other companies review their policies to make sure this is not happening to their employees.
An investigation by the U.S. Department of Labor’s Wage and Hour Division found that LinkedIn was in violation of the overtime and record-keeping provisions of the Fair Labor Standards Act (FLSA). LinkedIn failed to record, account for, and pay all hours worked in a workweek. The Act establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.
When notified of the violations, LinkedIn agreed to pay all the overtime back wages and take proactive steps to prevent repeat violations. The company has promised to train managers on compliance with the FLSA and remind employees that LinkedIn prohibits retaliation against workers who report compliance concerns.
A spokesperson for LinkedIn said these errors occurred because the right tools were not in place for some employees and their managers to track hours properly. However the company says it had already begun fixing the problem even before the Labor Department approaching it.
“Off the clock” unpaid hours and lack of overtime pay are problems that are all too common throughout the country. These practices harms workers, denying them the wages they have rightfully earned. They also take away employee’s time with their families. Employees are also being encouraged to review their basic workplace rights, their company’s pay policies, and to report any violations.